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Updated 06:38 25/09/20

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Venezuela is shipping gold to pay down debt


Adam Pike, News Editor
26 Feb 2016, 9:53 a.m.

In an act of desperation the Venezuelan government has shipped $1.3 billion of gold bars to Switzerland, according to data released from the Swiss Federal Customs Administration.

The Venezuelan economy is crashing and the government needs to raise $2.3 billion before the end of the month to stop the country officially defaulting on its debt.

Although the gold has been shipped to Switzerland it does not necessarily mean the gold has been sold. The Venezuelan government may simply be using the gold for collateral on a potential loan. This would appear to be the most likely reason behind the shipment.

Back in February Reuters reported Deutsche Bank and the Venezuelan government were in discussion over a potential gold swap. Venezuela has been a socialist basket case for decades and no amount of debt restructuring or gold swapping will stop the country eventually defaulting on its debt.

This deal is just another example of a financial institution lending money to a bankrupt nation with the goal of eventually taking control over the country’s wealth. Greece has been forced to sell their airports and other public assets and it appears as though Venezuela’s gold is next on the banksters list

View original source at: money.cnn.com

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